The important points
- New and young drivers need to have car insurance, but they can typically use a parent or guardian’s insurance rather than buying their own.
- If a young driver needs their own policy, they can buy one. But, not all providers can insure new and young drivers.
- Car insurance generally costs more for new drivers, but there are ways to reduce the price.
How does car insurance work for new drivers?
New drivers need car insurance, just like anyone driving in Canada. But, they don’t necessarily need to buy their own policy.
For teenagers and other young drivers, it’s much more common to use a parent’s or guardian’s car insurance. It’s easy to add a child to one’s policy — just talk to your insurance provider (or make a policy change online). There’s usually no added premium for including a learner-level driver, though that may change once they earn their probationary licence and start driving alone.
It becomes a little more complicated if a learner driver owns their own car. Sometimes, they can include that car on their parents’ policy if everyone lives at the same address — but this depends on the provider.
Obviously, not all new drivers live with a parent from whom they can borrow a car and an insurance policy.
People with learner’s licences are sometimes restricted from buying their own policies. They may need to meet specific requirements, such as being the owner and main operator of their vehicle and being the only licensed driver in their household. At the very least, their rates will be high.
People with novice or probationary licences can usually buy their own policies as needed, though they too will likely see higher prices.
New drivers vs. young drivers
Most new drivers are also young, but there are people who wait until they’re older to get their driver’s licence.
A “new” driver is anyone who has their learner’s licence or novice license (like classes G1 or G2 in Ontario) or has just recently earned their full licence. A “young” driver is anyone under the age of about 25, regardless of their licence status.
Insurance providers look at licence status and age separately. A driver’s age mostly only affects the price, but the licence class can introduce some additional restrictions. For example, someone with a learner’s licence might find it harder to buy their own insurance regardless of their age.
Insurance providers consider a driver’s licence class and history separately from their age for underwriting and pricing purposes.
How to get car insurance for the first time
Once you’ve got yourself a driver’s licence and a car, it’s time to buy car insurance. Note that you do actually need to own a car; you don’t need to buy insurance to drive someone else’s car (assuming that car’s already insured).
Even for a first timer, the process is straightforward:
1. Gather your information
At minimum, you’ll need your driver’s licence number and vehicle details (make, model, year, and Vehicle Identification Number). You’ll also need to provide your home address.
If you have ever held a driver’s licence in a different province or country, you might need to provide documentation to show your driving history. After all, even a short period of being previously licensed could help you save on your new policy. You’ll need a driver’s abstract from each jurisdiction in which you previously held a licence. Note that many insurance providers only consider driving experience from Canada and the US.
2. Get quotes
Depending on which province you live in, you may or may not need to shop around for your insurance.
In BC, Saskatchewan, and Manitoba, you’ll be buying basic insurance from the public insurer, so it doesn’t matter too much where you go — the price and basic options won’t change. Some brokers offer their own features beyond the basic coverage, but the base policy is always the same.
In every other province and territory, you’ll buy from a private company. Don’t get overwhelmed — each province heavily regulates car insurance, and you’ll be buying the same base policy no matter where you go. The differences between providers are mainly:
- Pricing
- Available options and add-ons
- Service
So, to evaluate these differences, you can request car insurance quotes from several different providers. Getting a quote is basically buying a policy without the actual purchase step; you’ll give all the necessary information and make coverage selections, and the provider will give you a price.
Many providers offer online car insurance quotes that you can complete from your phone or computer. Square One’s online car insurance quotes can be as quick as five minutes. You can also do it over the phone with an agent. Some providers offer in-person service as well.
3. Choose a provider and complete the purchase
Based on the quotes you get, you can decide which you like best. Which has the best price? Are you getting similar coverage from each? Did you like the customer service?
Once you’ve decided, buying the policy will be easy. After all, you already completed most of the application to get the quote. Just follow the chosen provider’s instructions for purchasing your quoted policy. Much of the time, that’s it — provide some payment information and they’ll issue your policy documents and pink card (proof of insurance). If they offer electronic delivery, like Square One, you’ll receive these documents immediately via email.
Occasionally, they may need to request additional information after reviewing your application. If that’s the case, they’ll let you know.
4. Hit the road
Once you’ve got your proof of insurance, you’re ready to drive. Make sure you always have the pink card with you; driving without insurance is illegal, and you need to be able to demonstrate that you’re insured.
Many provinces and territories allow digital pink cards, meaning you can keep the proof on your phone. Just keep in mind that it’s wise to keep a paper backup, because having your phone die (or forgetting it) aren’t valid excuses.
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